A company allocates its variable factory overhead based on direct labor hours.During the past three months,the actual direct labor hours and the total factory overhead allocated were as follows:
Based upon this information,monthly fixed factory overhead was:
A)$30,000.
B)$50,000.
C)$46,667.
D)$33,333. Using January and March: Unit variable cost = ($200,000 - $80,000)/(5,000 - 1,000)= $30 Fixed cost = $200,000 - (5,000 x $30)= $50,000.= $80,000 - (1,000 x $30)= $50,000

Question

A company allocates its variable factory overhead based on direct labor hours.During the past three months,the actual direct labor hours and the total factory overhead allocated were as follows: 
Based upon this information,monthly fixed factory overhead was:
A)$30,000. 
B)$50,000. 
C)$46,667. 
D)$33,333. Using January and March: Unit variable cost = ($200,000 - $80,000)/(5,000 - 1,000)= $30 Fixed cost = $200,000 - (5,000 x $30)= $50,000.= $80,000 - (1,000 x $30)= $50,000

Quizplus · Accepted Answer

The Answer of A company allocates its variable factory overhead based on direct labor hours.During the past three months,the actual direct labor hours and the total factory overhead allocated were as follows: 
Based upon this information,monthly fixed factory overhead was:
A)$30,000. 
B)$50,000. 
C)$46,667. 
D)$33,333. Using January and March: Unit variable cost = ($200,000 - $80,000)/(5,000 - 1,000)= $30 Fixed cost = $200,000 - (5,000 x $30)= $50,000.= $80,000 - (1,000 x $30)= $50,000

A Company Allocates Its Variable Factory Overhead Based on Direct